Middle East Tensions Ease, Chip Stocks Surge as Tech Leads U.S. Markets to New Highs

Hope emerged in the Middle East conflict as oil prices declined, propelling U.S. equities higher today, with the Dow Jones Industrial Average reaching a new all-time high of 51,671.03, driven by technology stocks. SpaceX, the space exploration company, continued to attract strong investor demand on its second day of trading, while chip stocks rebounded sharply. Markets anticipate a U.S.-Iran agreement this week that would allow free passage through the Strait of Hormuz, easing inflationary pressures.

Encouraged by expectations that the U.S. and Iran will sign a preliminary agreement on the 19th, Iran announced it would allow ships to pass through the Strait of Hormuz free of charge for 60 days after the agreement takes effect. President Donald Trump stated vessels could begin passage on the 19th, signaling a clear de-escalation in Middle East tensions. Fueled by these positive developments, the Dow, S&P 500, and Nasdaq indices closed higher on the 15th, rising 0.92%, 1.65%, and 3.07% respectively. The Philadelphia Semiconductor Index surged 5.45%.

The Dow Jones Industrial Average gained 468.77 points, up 0.92%, closing at 51,671.03—a new record.

SpaceX, the space exploration and artificial intelligence company that went public on the 12th, rose nearly 20% on its first day and continued its momentum today with a 19.60% gain.

Chip stocks performed strongly, with Micron, Marvell Technology, and AMD surging 10.84%, 10.43%, and 6.98% respectively, pushing their share prices toward new highs. TSMC’s ADR rose 4.12%.

Nvidia, Broadcom, and Intel were similarly boosted by news of potential Strait of Hormuz navigation and falling oil prices, rising 3.54%, 3.11%, and 2.64% respectively.

On the 15th, the spot prices for international Brent crude (ICE Brent Crude) and West Texas Intermediate (WTI) crude oil were around $80 per barrel, with July-expiring futures trading at similar levels.

Brian Mulberry, head of market strategy at Zacks Investment Management, said on CNBC’s financial channel: 'This is unfolding more orderly than expected, not a negative situation. These stocks aren’t meme stocks detached from the broader market—they’re held in portfolios for the long term and not easily traded.' (Edited by Wei-Shu) 1150616